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Kinder Morgan

Student Name

Instructor's Name

Institution

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Issues

They are renowned for contaminating waterways and ruining communities with their coal

export activities. In reality, the company has a history of polluting, breaking the law, and lying

about it. At Kinder Morgan's Louisiana port, the coal is dumped straight into the Mississippi

River and the adjacent marshes. Infrared images show the factory spewing out black plumes of

coal-polluted water. As a result, Kinder Morgan paid out compensation to nearby people whose

houses and possessions were routinely coated in coal dust. Kinder Morgan's terminal operators in

Houston store hazardous byproducts of oil refining, including coal and pet coke, heaped several

storeys high in open heaps. Even its marketing materials depict its equipment covered in black

dust from its petcoke operations. Oysters, pilings, and boats are contaminated by coal dust from

Kinder Morgan's terminal in South Carolina's bay. The firm has been shown on camera washing

coal into wetlands.

Two of Kinder Morgan's pipelines ruptured in residential areas in Canada, causing spills

and explosions. According to the analyst, the corporation has been accused by a hedge fund

analyst of starving its maintenance pipelines. US authorities have punished Kinder Morgan many

times for violations such as lying to air quality officials and diverting coal from customers'

stockpiles.

Solutions

The corporation should make more significant investments in recycling initiatives. The

corporation should also work to reduce coal contamination of the Mississippi River by locating a

more secure coal disposal location, which will help to reduce water pollution. The corporation

should increase its investment in manufacturing equipment. The organization should employ
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more cutting-edge technology that is also ecologically conscious. The corporation should

conduct an internal investigation into its ethical concerns and take appropriate action against any

employees who violate its ethical standards. To restore the company's reputation, corrupt and

unethical employees should be terminated following established protocols and norms.

Controversies in regard with stakeholders

An investigation into Kinder Morgan revealed that the company has engaged in various

labor and worker safety violations. The United States Department of Labor sued Kinder Morgan

in February 2011 because the company had been underpaying approximately 4,600 employees

for at least two years. As part of a settlement, the corporation agreed to pay $830,000 in back

wages. The company's facilities are said to perform "better than the industry average" in safety

performance. US health and safety authorities have punished Kinder Morgan multiple times for

worker safety infractions, including "serious" violations at the firm's Oregon bulk processing

plant, which was shut down in 2011.

By paying $7.5 million in 2011, Kinder Morgan agreed to resolve a family's lawsuit

against the company for the tragic death of a Nevada trucker in 2011. According to the family's

claims, the corporation failed to monitor and warn employees about potentially harmful

chemicals such as benzene exposure. Kinder Morgan is adamant that the company does not make

political contributions. Although Kinder Morgan has spent $1.8 million lobbying Congress since

2003, according to public records made available by the Center for Responsive Politics, the

company continued to do so in 2014. Since 1998, Kinder Morgan employees have donated more

than $1.4 million to candidates and political action committees, with most contributions to

Republicans. 1 For the last two decades, Kinder Morgan employees have donated more than $1.4
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million to candidates and political action committees, with the vast majority of the funds going to

Republicans.

The leadership of Kinder Morgan is also known for lavishing political favors on their

employees. More than half a million dollars have been contributed to the Republican National

State Elections Committee, an unregulated "soft money" fund, by Richard Kinder, CEO, and

owner of 24% of the firm.

Roles of the Canadian government

Both Kinder Morgan and the Canadian Association of Petroleum Producers (CAPP) have

called on their respective governments to establish a timeline for breaking ground on the Trans

Mountain pipeline expansion. Such initiatives, according to a recent study on corporate political

influence in Canada, "balance the playing field in favor of politicians, parties, and policies that

better fit those interests, regardless of whether those interests reflect the views of the majority of

voters." Recently interactions with the Ministry of Natural Gas, the Oil and Gas Commission,

and Premier Christy Clark's office have all been directed toward these organizations. The

contacts were made between December 2015 and September 2016. These interactions declared

an explicit purpose, which was developing the Trans Mountain expansion project.

Regulated locations and places where government services are too expensive suffer from

a competitive disadvantage. Society has the legal authority to impose constraints on behavior and

the intended effects via regulations. It must, however, ensure that it is only regulating what is

genuinely essential and that it has adequate and timely processes in place to meet and enforce the

standards set out. Also noteworthy is that services are provided by people who are most qualified
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to do so (sorry, outsourcing isn't a dirty word). That service delivery is innovative, making use of

new and developing technology.

Sustainability and perspectives

i. Bargaining power of suppliers

Suppliers' negotiating strength increases, allowing them to set prices when

downstream companies have limited alternatives. Due to climate change, supply

chain problems, such as water scarcity and resource scarcity, pressure the food and

beverage sector.

ii. The threat of new entrants

The sustainability qualities and certification criteria of furniture goods in the office

furniture business are expected to deter new entrants into the market. More

significant, established firms are better equipped to develop at scale and more

efficiently certify goods that may enhance the LEED certification of new construction

projects. A barrier to entry for smaller or new enterprises may be the costs and

expertise necessary to get sustainable certifications such as those granted by BIFMA

or the Forest Stewardship Council (FSC).

iii. Bargaining power of buyers

They may exercise considerable influence over suppliers and impact the sustainability

attributes of items they purchase and sell to consumers. Some retailers may have

implemented a competitive strategy to accommodate increased customer demand for

environmentally friendly products.

iv. Rivalry among existing competitors

Businesses continuously position and reposition themselves to get a competitive edge

in the marketplace. It's not unusual for companies to compete with one another on

pricing or innovation, but environmental performance is becoming more critical. For

example, sustainability is one of the improvements pushed by the competitive

strategy. No one can ignore the connection between sustainability and market

competitiveness anymore, not even businesses, analysts, or investors who care about

sustainability. According to Porter's Five Forces, companies may increase their value

and acquire a competitive advantage by considering and managing sustainability risks

and opportunities. As a result of the many environmental and ethical difficulties that

Kindler Morgan faces, the company does not have a competitive edge in the

marketplace. If you don't account for and manage sustainability risks, you won't

capture the value and build a competitive advantage.

v. The threat of substitute services or products

Containers and packaging are changing due to new regulations and a rising desire for

environmentally friendly goods. As the environmental properties of traditional

alternative materials (plastic, metal, paper, and glass) become more widely recognized

and as consumer preferences shift toward more environmentally friendly packaging, the

demand for classic alternative materials (paper, plastic, glass, and metal) will vary.

Globalization and its role

As a result of globalization, businesses get access to new customers and sources of

revenue. Companies that want to take advantage of these advantages are looking for new and

flexible ways to expand their global operations. It is now simpler than ever to recruit employees

from other countries in a timely and legal manner, thanks to International Professional Employer
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Organizations (PEOs). As a result, many firms will no longer be required to establish a foreign

corporation to expand their operations overseas. One of the primary motivations for constructing

the pipeline was gaining access to new markets.